In Indian culture devotion to parents health is ingrained in us. Whether it is our gods or our heroes, our culture places caring for one’s parents as one of the highest social virtues for a person. While earlier it was sons who took on the bulk of responsibility, with changing social norms increasingly daughters are also coming to forefront. However today join family system is under stress. Career mobility, increasing cost of accommodation and a desire for privacy have led to an increasing number of adults not living with their parent. But a separate home does not mean that parents are being abandoned.

In most surveys, including by reputed Pew research centre, more than 90% of adults have indicated that they feel strongly responsible about taking care of their parents. That is a noble sentiment. We at Carepal Secure have had a deep experience dealing with such like situations where children have had to struggle to take care of their parents. And while each family is different here are some basic steps that you can take to make sure that your parents are well taken care of.

Indians in age group of 60 plus grew up in India where health insurance was largely absent. And therefore, a disturbingly high percentage of old age individuals are not covered under any health insurance. This is dangerous as with old age chances of sudden hospitalisation increase sharply. There are many health insurance companies which have very good health insurance plans for senior citizens. We advise our customers to research these plans thoroughly particularly because in old age the chances of pre-existing illness are very high. Therefore, the plan chosen should be such that it covers the existing illness even after waiting period of few years.

One of the problems many customers have faced till recently was that after a certain age health insurance cover was simply not available. There was an upper age cap for almost all health insurance plan. However recent changes in regulation by Insurance Regulatory & Development Authority of India (IRDAI) has now mandated insurers to remove the age caps and offer insurance without any upper age limits. This is a very welcome move and will go a long way in helping customers get the best health insurance plans from the very best companies with only constraints being underwriting process and the capacity to pay insurance premium

Now while underwriting process is something that is not in control of the customers, insurance premium is something that is a reality that needs to be faced. Sad fact is that health insurance in old age can feel very expensive. However, when we think dispassionately it is logical. Old people have much more medical issues than young and therefore it is but logical that the price of health insurance particularly with the best health insurance companies will be high. And fact is that the price for old age health insurance is high no matter which company you opt for. There are two things we advise our clients on this issue.

First is that insurance premium paid for old parents has very high tax deduction limit of 50,000 under section 80D. This is over and above the 25,000 that a person avails for self, spouse and children. So, this can lighten the burden somewhat. The other is to look at insurance premium not as an expense but as an EMI. Given the age of parents, it’s very high chance that they are going to fall sick and get hospitalised. When they do you are going to have to pay the bill out of your savings. Health Insurance premium is way of accoutring for that expense in small amounts and in advance. This perspective enables customers to look at high health insurance premiums for their parents in a new way.

The other way to look at the problem of health insurance for parents is to look at high deductible or copay plans. High deductible where the health insurance cover gets activated only after a certain amount has been spent by the customers or a copay where customer agrees to foot a certain percentage of the bill in every claim. These arrangements bring down the premium costs in a big way and make insurance accessible for your parents in old age.

Recently the government has made health insurance of Rs 5 lac under Ayushman Bharat Scheme free for all citizens above age of 5 lac. This is something you should take advantage of if your parents are 70 years and above. It is the simplest step you can take to protect your old parents

Link to Ayushman Bharat articles and enrolment